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Lectern

By Steve Kelman

Blog archive

The Lectern: Stimulus spending and contracting redux

In my blog post last week on how the stimulus plan will affect contracting, I wrote that this topic hadn't gotten any public attention to my knowledge. It turns out I had not seen an article on this topic in the Washington Post. In fact, the Post's contracting beat reporter had contributed another nostalgic perspective on contracting from the days when it took four months to order a dictaphone. In an article called, "If Spending Is Swift, Oversight May Suffer," Robert O'Harrow Jr. wrote that it is impossible to spend money quickly--as the economic crisis requires--and responsibly. O'Harrow located a contracting professional with four decades of contracting experience, Kent Goodger, who said it "typically takes 180 days to award a standard firm, fixed-price contract."

Well, this was the case towards the first of the four decades of this expert's contracting experience, but it is no longer true. Pre-negotiated contracts, reverse auctions, and blanket purchase agreements, all allow quick, competitive purchasing of commercial supplies. Indeed, as I indicated in my blog (without being aware of O'Harrow's paean to a procurement yesteryear), without the procurement reforms of the 1990's, the kind of quick spending the economy needs for stimulus seeks would indeed be impossible.

For those nostalgic for a bygone era of molasses procurement and "good enough for government work" lassitude, the changes in the system to make possible buying that is both fast and that gets a good deal for agencies and taxpayers have never been worth much. For the O'Harrows of the world, this is "mere administrative convenience." In fact, molasses procurement shows indifference towards agency missions that procurement supports, as well as contempt for civil servants who labor under these delays. Would O'Harrow -- or Danielle Brian -- put up with a procurement system at the Post or at POGO that made them wait four months for a simple item needed to allow pursuing a story? I doubt it. But they don't seem to mind if mere civil servants have to put up with such things.

(I should note that all these issues are separate from the need for resources for good contract management, especially of service contracts, and also the correct criticism that extra time spent upfront defining requirements better, especially for service contract, is often time well spent.)

It was interesting for me to see that the blog of the Project on Government Oversight, headquarters of the fear industry, (sort of) liked my recent FCW column about the government negotiating lower labor rates during these times of economic distress. However, ever gracious, the POGO blog on the topic was titled, "A Broken Clock is Right Twice a Day."

Posted by Steve Kelman on Feb 18, 2009 at 9:18 AM


Reader comments

Mon, Feb 23, 2009

Problem is, either government experts or industry executives or august academics who fancy themselves as procurement experts would be hard pressed to show that the speed of spending results in more/less effectiveness or more/less waste, fraud, or abuse. So, the stimulus might as well be asap.

Mon, Feb 23, 2009

GAO and others have been critical of the Bush and Obama Administrations of throwing taxpayer money at the banking problem without any clear sense of how the money would achieve the stated objectives, e.g., restore the credit markets. Now that OMB has released its Recovery Act guidance, it becomes very clear that the government folks in charge of TARP and the Recovery Act programs have no clue how to link money with performance expectations. Nowhere in Director Orzag's cover memo is the word "jobs" used, yet this is the goal most often cited by the President and Congress when discussing their Recovery Act expectations. Furthermore, although OMB requires agencies to appoint "senior accountable officials" to administer their Recovery Act funds, there is no chain of accountability from those senior officials to the Program Managers whose programs received Recovery Act funding to the Contracting Officers and Grant Managers responsible for disbursing the funds. Finally, there are no provisions for requiring contractors or grantees to establish job expectations for the funds they are requesting, even though the Recovery Act requires them to report on jobs created. In short, the guidance in long on after-the-fact accountability and very short on up front planning. Since the government was unable to learn anything from the GAO criticism of TARP, I'm sure they will have other opportunities to learn from future GAO criticisms of the Recovery Act planning.

Sun, Feb 22, 2009 walterlee

Generally speaking, the government will have more power and control more than before in the "crisis" time, in the name of fighting against unknown emergency. Sometimes, I may think governments function much differently in different situations.

Thu, Feb 19, 2009 DOD

I find the comment "spend money quickly--as the economic crisis requires" another one of the many myths circulating around on this so-called stimulus package. These myths were created primarily to get the package approved because it never would have been approved otehrwise. It is primarily a pork package with several items inseted to give more power to the government that is not allowed by the Constitution and more power to the Democrat party and its socialist adgenda. Government Contracting can get these packages out if given a few more months. But in order to get this bill out without the proper scruntiny, this rush mentallity had to be added to the entire thing to cover up what a farce the entire "crisis" really was.

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John Monroe

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